Fearns (t/a Autopaint International) v Anglo-Dutch Paint & Chemical Company Ltd & Ors

Fearns (t/a Autopaint International) v Anglo-Dutch Paint & Chemical Company Ltd & Ors

The claimant is entitled to damages for unauthorised sales and lost profits resulting from trade mark infringement and passing off, but not for the total collapse of the business, as the business was already in terminal decline due to cash flow and management issues unrelated to the defendants' unlawful acts. Damages are awarded for lost profits on unauthorised sales, credits due for authorised sales, and royalties under the Australia and Malta agreements, with set-off against the counterclaim.

Parties
Claimant: Gary Fearns (trading as Autopaint International); First Defendant: Anglo-Dutch Paint & Chemical Company Limited; Second Defendant: De Beer Lakfabrieken BV; Third Defendant: Christopher Welch; Fourth Defendant: Richard Jongsma; Fifth Defendant: Marco Van Der Woude; Sixth Defendant: Theo Wemmers
Jurisdiction
England and Wales
Judgment Date
09 July 2010
Procedural Posture
Civil (intellectual Property, Contract, Tort) / Assessment of Damages Following Liability Judgment and Appeal
Outcome
Damages and credits awarded to claimant; set-off against counterclaim; further directions on interest and currency conversion reserved.
Legal Topics
Trade Mark Infringement, Passing Off, Breach of Contract, Damages Assessment, Causation, Counterclaim
Intellectual Property Contract Law Tort Law Trade Mark Infringement Passing Off Breach of Contract Damages Assessment Causation +1 more

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Parties

Gary Fearns (trading as Autopaint International)

Claimant

Anglo-Dutch Paint & Chemical Company Limited

First Defendant

De Beer Lakfabrieken BV

Second Defendant

Christopher Welch

Third Defendant

Richard Jongsma

Fourth Defendant

Marco Van Der Woude

Fifth Defendant

Theo Wemmers

Sixth Defendant

Procedural Posture

Civil (intellectual Property, Contract, Tort) / Assessment of Damages Following Liability Judgment and Appeal

Legal Issues

  1. 1 Extent of unauthorised sales and lost profits
  2. 2 Credits due for authorised sales
  3. 3 Causation of loss of franchisee network and business collapse

Ratio Decidendi

The claimant is entitled to damages for unauthorised sales and lost profits resulting from trade mark infringement and passing off, but not for the total collapse of the business, as the business was already in terminal decline due to cash flow and management issues unrelated to the defendants' unlawful acts. Damages are awarded for lost profits on unauthorised sales, credits due for authorised sales, and royalties under the Australia and Malta agreements, with set-off against the counterclaim.

Court Disposition

Damages and credits awarded to claimant; set-off against counterclaim; further directions on interest and currency conversion reserved.

Orders

  • Claimant awarded £162,679 for unauthorised sales (trade mark infringement and passing off)
  • Claimant awarded £69,720 (converted to €101,094) as credits for authorised sales under the Direct Sales Agreement